Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — UBS Australasia Conference 2017
20 slides from Lifestyle Communities's conference presentation, Nov 13, 2017
Slide 1: A Business for Purpose
For personal use only A Business for Purpose UBS Australasia Conference 2017 13 November 2017 LIFESTYLE COMMUNITIES LIMITED EMPOWERING POSSIBILITIES 1
Slide 2: Our Story
OUR STORY For personal use only James Kelly, Dael 2003 Perlov and Bruce Carter develop business plan Development of first community at Brookfield. 2004 Opened in June 2005 Listed on the 2007 Australian Stock Exchange Major capital 2012 raising of $36m 1,000th homeowner moves in 2014 2,000th homeowne
Slide 3: A Business for Purpose
A BUSINESS FOR PURPOSE For personal use only • An affordable housing option to the 50% of Australians who have less than $500,000 in total equity • An affordable and sustainable financial model where homeowners can prosper • A respectful but engaging service strategy • High quality resort style faci
Slide 4: Financial Model
FINANCIAL MODEL A win-win for homeowners and shareholders For personal use only CREATING COMMUNITIES MANAGING COMMUNITIES Total annuities at year end Dividend flow Cash break even after allocation of costs to management business Completed communities building RECYCLING a long term sustainable income
Slide 5: Community Overview
COMMUNITY OVERVIEW How does the Lifestyle Communities For personal use only model of living work? Homeowners at Lifestyle Communities own their own home and lease the land upon which their Homeowners at homes are located, via a weekly site fee. Lifestyle Communities are protected by the Residential
Slide 6: Overview: Financial Summary FY2017
OVERVIEW Financial Summary FY2017 ($ Million) FY2016 ($ Million) Net profit after tax attributable to shareholders $27.7 $19.3 Underlying net profit after tax attributable to shareholders $25.0 $16.9 Business snapshot Total assets $266.1 $222.5 For personal use only Equity $155.5 $131.3 Dividends (i
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW 15 communities in planning, development or under management For personal use only Focus remains in Victoria Community Homes Settled • Favourable planning legislation • Better access to zoned, flat land for Brookfield at Melton 228 100% development Seasons at Tarneit 136 100% • Low
Slide 8: Acquisition Strategy
ACQUISITION STRATEGY Focused on Melbourne and Geelong’s growth corridors For personal use only • Targeting zoned land in Melbourne and Geelong’s growth corridors • Increasing opportunities to buy superlots from land developers • Melbourne has the strategic benefit of flat topography which increases
Slide 9: Recent Land Acquisitions
RECENT LAND ACQUISITIONS Lifestyle Berwick Waters For personal use only • First homeowners moved in May 2017 • 172 homes sold to 31 October 2017 since project launch in April 2016 Lifestyle Bittern • Commenced construction • 104 pre-sales achieved up until 31 October 2017 • Strong interest from the
Slide 10: Sales Rates
SALES RATES For personal use only 200 • Lifestyle Communities’ Sales SALES PROFILE FROM DATE OF FIRST SALE focus has shifted to improve 180 pre-sales. This reduces Chelsea Berwick risk by supporting a more 160 Cranbourne aggressive construction Officer 140 program to enable faster Hastings capital r
Slide 11: Market Overview
MARKET OVERVIEW Key Themes Two key emerging trends come For personal use only together to create the Lifestyle Communities business model Affordability Baby Boomers • Opportunity to • Want to maintain create more control affordable housing • Want to own their • Rents sustainable home for Age pension
Slide 12: Market Overview: Victorian population growth
MARKET OVERVIEW Victorian population growth As at 30 June 2016 there were For personal use only over 629,000 Victorians aged over 70 and over 1,345,000 aged between 50 and 69 85+ (127k) 80-84 (119k) War Generation Average age of someone Baby boomer Generation 75-79 (165k) moving into a Lifestyle Com
Slide 13: Segment Differentiation
SEGMENT DIFFERENTIATION Market starting to differentiate between For personal use only Lifestyle Communities and retirement & others Re Se As tire Age moving in Age moving in Age niors Rental sisted Living ment Villag 65+ 75+ d Care Lifestyle e Communities s Age Move-in age getting younger and incre
Slide 14: Community Designs
COMMUNITY DESIGNS Evolving every part of the For personal use only product Urban Layout Entry Landscaping Clubhouse Home Designs Ensure that the homes Create a sense of arrival Significant investment Ongoing evolution with Evolving to meet work together by varying and security in landscaping to add
Slide 15: Lifestyle Officer
LIFESTYLE OFFICER We are continually improving our offer For personal use only LIFESTYLE COMMUNITIES LIMITED EMPOWERING POSSIBILITIES 14
Slide 16: Settlement Goals - New Sales
SETTLEMENT GOALS - NEW SALES Settlements growing with increased sales rates and new projects For personal use only FY2017 FY2018 FY2019 settlements settlement settlement (actual) range range TOTAL 278 260-290 300-340 Shepparton 50 40-50 35-50 Lyndarum 68 30-40 - Geelong 50 40-50 20-40 Officer 98 20-
Slide 17: Likely Settlement Program
LIKELY SETTLEMENT PROGRAM For personal use only Currently 2,827(1)homes in the portfolio Community FY18 FY19 FY20 FY21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Shepparton Wollert Geelong Officer Berwick Waters Bittern Ocean Grove Armstrong Creek (1) Kaduna Park (1) Represents tail of developm
Slide 18: Summary
SUMMARY Lifestyle Communities continues For personal use only to capitalise on the solid base established for future growth • Emerging baby boomer driving increased customer interest • More than one in two of sales are coming from customer referrals • Settlements in FY2018 expected to be in the rang
Slide 19: Important Notice and Disclaimer
Important Notice • This Presentation contains general background information about Lifestyle • Past performance information given in this Presentation is given for illustrative predictable, which could cause actual results to differ materially, in terms of and disclaimer Communities Limited (LIC) an
Slide 20: Lifestyle Communities Limited
For personal use only LIFESTYLE COMMUNITIES LIMITED Level 2, 25 Ross Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au LIFESTYLE COMMUNITIES LIMITED EMPOWERING POSSIBILITIES 19
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